Unemployed Face More Benefit Sanctions

The governments push to put more people in work rather than rely on income from the benefit saw another two non-financial sanctions added to the MSD’s Traffic Light System

Social Development and Employment Minister Louise Upston announced the sanctions to incentive more job seekers to enter the workforce.

“Our economy is stronger when more people are in work, and as we look to unleash economic growth, it’s important that as many Kiwis as possible share in the benefits.

“It’s important that beneficiaries who can work are taking reasonable steps to re-enter the workforce or remain work-ready, and that consequences exist for those who don’t.

In announcing the Government’s intention to add two more non-financial sanctions with a strong focus on work to the Traffic Light System. They are:

  • Report Job Search – where job seekers will be required to perform a minimum of three job-search activities every week for four weeks and report back to MSD on this. This sanction will support increased accountability for beneficiaries who are meant to be looking for work.
  • Upskilling – where job seekers will be required to attend and participate, to MSD’s satisfaction, in one or more employment-related training courses or programmes for a minimum of five hours per week over a four-week period. This sanction will support beneficiaries with building the skills they need to get into work.

“These sanctions are in addition to the new Money Management and Community Work Experience sanctions that will come into force later in the year.

The MSD is currently enhancing the welfare system the necessary tools and focus to reduce welfare dependency, support more individuals in finding employment, and capitalise on the economic growth in the coming years.

“Our approach has already shown signs of early success with more than 33,000 people moving off Jobseeker into work between July and December, a 22 per cent increase on the same period in 2023. This coincided with about 15,600 more benefit sanctions being issued during that period – an increase of 126 per cent.

Upston feels the implementation of returning consequences for job seekers is influencing transition from welfare to employment for many.

Labour leader Chris Hipkins said it showed the Government’s “willingness to kick people when they’re down” rather than focusing on getting people back into work, and that the approach was “punitive”.

Spread the Truth:
keyboard_arrow_up